Ninety Percent of Restaurants Say They Are Unlikely to be Profitable Without Assistance

A total of 89.7% of New York’s restaurant owners say that it will be very or somewhat unlikely that their establishments will be profitable in the next six months according to a survey conducted by the New York State Restaurant Association (NYSRA).

The survey found that the financial impact has been devastating and the steps taken to provide relief at the federal and state levels will determine how and whether the restaurant industry will ever recover.

Here are some of the other significant findings from the survey:

·         93.6% of New York restaurant operators saw lower sales volume from April – July of 2020 as compared to last year. Many restaurant operators reported a decrease in sales volume from the previous year of 70% or greater.

·         91.8% of New York restaurant operators have been forced to furlough or lay off employees since the COVID-19 outbreak, and a majority of restaurant operators (54.7%) had to lay off or furlough 90-100% of employees.

·         74.2% of New York restaurant operators have no plans of hiring additional employees in the next 30 days.

·         18.6% of restaurants remain closed, either temporarily or permanently. For those still closed, the top reasons were a lack of business, lack of employees and limited or no indoor dining.

NYSRA members are asking for a relief package at the federal and state levels to help keep these important community resources viable and keep people employed. When asked what government could do to help their businesses to survive the pandemic, the top three answers were:

·         Provide commercial rent relief

·         Insist that business interruption insurance claims are paid

·         Increase the capacity for indoor dining

“Our members have been courageously working and innovating to be successful in this changing landscape. We are forever grateful to the loyal New Yorkers who have supported their neighborhood and favorite restaurants, without whom this modest success would not be possible. Now we are urging the federal government and the New York State Legislature to show their support for this industry which plays such a vital role in our state’s economy,” said Melissa Fleischut, President & CEO of NYSRA.

NYSRA conducted this survey to gain a clear understanding of the current and ongoing impacts of the COVID-19 pandemic on New York restaurants. More than 625 New York restaurant operators completed this survey in the first week of August.